Chinese Stock Screen Combining Price Amplitude, Moving Average Crosses, and Code Prefix

Summary

This document outlines a Chinese equity selection rule requiring price amplitude above a stated threshold, simultaneous upward crosses among three moving averages, and a stock code beginning with a specified prefix. It frames amplitude as a measure of volatility and the crosses as a possible sign of a developing short- or medium-term uptrend. The accompanying example uses moving averages with stated lookback periods, checks the stock-code prefix, and ranks qualifying shares by current price.

The article offers no backtest, historical sample, or performance results, so its claims about improved selection accuracy are not demonstrated. It notes that the rule relies mainly on technical signals, leaves company financial condition and valuation unexamined, and can exclude otherwise suitable shares because of the code-prefix restriction. It recommends considering fundamental measures and broader market or sector context. The exact use of “simultaneous” crosses is also not fully clarified, and the sample implementation is illustrative rather than a validated trading system.

Key ideas

• The screen combines price amplitude, a sequence of moving average crosses, and a stock-code prefix.
• The crosses are presented as a possible signal of an emerging upward trend.
• The sample ranks qualifying shares by current price but supplies no performance evaluation.
• The code-prefix condition narrows the universe and may exclude other candidates.
• Fundamental and market context are suggested as additional filters.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.